• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

profitability index

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › profitability index

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 5, 2018 at 7:03 am #471505
    Avatarayeshatabani
    Member
    • Topics: 98
    • Replies: 95
    • ☆☆

    Dear sir,
    When calculating Profitability index both these ways are acceptable right?

    1) NPV/ initial investment

    2)(NPV-initial investment)/intial investment

    Please do correct me if i’m wrong.
    thankyou

    September 5, 2018 at 2:19 pm #471586
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    What you have written is correct except that you should have written PV and not NPV in both cases.

    (PV – initial investment = NPV 🙂 )

    September 5, 2018 at 4:24 pm #471621
    Avatarayeshatabani
    Member
    • Topics: 98
    • Replies: 95
    • ☆☆

    thankyou!

    September 5, 2018 at 6:18 pm #471673
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘profitability index’ is closed to new replies.

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Bongi on Introduction to Working Capital – CIMA F1 Financial Reporting
  • AKareem on ACCA TX-UK FA2025 Chapter 14 Capital Gains Tax – Individuals – Reliefs
  • Breadtoast67 on Diversification – ACCA Strategic Business Leader (SBL)
  • Breadtoast67 on Diversification – ACCA Strategic Business Leader (SBL)
  • TEDI on IAS 16 Property, plant and equipment – Initial Recognition – CIMA F1 Financial Reporting

Copyright © 2026 · Contact · Advertising · OpenLicense · About · Sitemap · Privacy Policy · Cookie settings · Comments · Log in